Net present value of project with initial cost


Problem: What is the net present value of a project with the following:

1. initial cost of fixed assets is $90,000 which will be worthless at the end of the project

2. will generate cash flows of $40,000 per year for 5 years

3. additional net working capital of $5,000 is required over the life of the project

4. required rate of return is 15%

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Finance Basics: Net present value of project with initial cost
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